This isn't truly a hot deal, but I'm posting it here because many people will find this useful (I hope), and future hot deal posts on cell phones can refer back to this thread as supplemental info. Plus the info can potentially save you a lot of money, so here goes:
Phones
The "secret" is that the cell companies pay the retailers a couple hundred dollars commission per activation. Decently new cell phones are actually worth $100-$200 bucks. This means that you should find a seller who is willing to eat up the cost of the phone with a good portion of their commission. Most retail cellphone stores aren't willing to do this, so you might not be able to find one. But I can guarantee that any store in Chinatown (NYC) will do this and this is how some people get phones for really cheap. I go to school in the city but I live in Jersey, and even in NJ i found a small store nearby that does this. For example, right now you should not be paying more than $50 for a Sony Ericsson T68m with activation (the store in NJ and Chinatown will offer the T68m for about $40); and I have a family member who got a LG VX-1 with Verizon activation for $85. I suspect that the phone prices vary because certain cell services pay more commission than others.
Service
Here are the overall rankings of reception quality, and varies a bit depending on area, but this is generally (and please note the bolded type) what I've found to be true. I've tested this on the west coast, midwest, and east coast:
1. Nextel / Verizon - Nextel was designed for businesses, and so is very expensive but has really good reception; in fact, it really doesn't belong on this list because it's not really an option for personal cell use. Verizon is hands-down best overall in terms of reception for personal cellular service; it is the one cell service that I have gotten ppl from all over the country to agree as the best. Also, generally, Verizon will work at least anywhere AT&T works. A technical note: I don't know if this is 100% true but I've heard that even though both Verizon and Sprint use the CDMA protocol, Verizon tends to work better especially inside buildings because Verizon uses the 800mhz (among others) frequency, which penetrates buildings better than the frequencies that Sprint employs.
2. AT&T - ATT kinda sucks but it's still better than many other services. The common problem with ATT is that the phone would show many bars of reception, yet when you're actually talking, it'll randomly screw up or drop your calls. Basically, it's shaky and depends on what area you live in. Yes I know I'm going to anger lots of ATT fans, but perhaps ATT will be better once they fully implement GSM (by which time GSM will be obsolete and 3G will take over). Also, my friends who have the Motorola V60c with Verizon get perfect service while the friends who have the V60t with AT&T always complain of calls getting dropped, which is probably why AT&T offers the V60t for free while Verizon still offers the V60c (they look identical) for more than $100..
3. VoiceStream / Cingular - Being a decently satisfied VStream customer, I regret to rank it so low on the list. Cingular is here because it's basically the exact same thing as VoiceStream. VoiceStream/Cingular doesn't have very good coverage. It's usually the weakest when you're inside buildings. What VStream is good at, however, is it's high-tech features. So far, Vstream is the carrier that provides the most advanced features for free (go on AIM, check weather, check flight status, etc); and VStream/Cingular are the first ones to use GSM instead of unbelievably outdated protocols (TDMA, CDMA) that most other services use. In addition, VoiceStream attempts to make up for the low coverage with lots of minute. Right now you can get a national plan (meaning you can call to anywhere in the country as well as from anywhere in the country) for $40/mo with 500 weekday and unlimited weekend minutes.
4. Sprint PCS - I don't personally know any satisfied Sprint customers, but I believe Sprint does work well in very specific parts of the country; however, the phones are expensive and the service is usually unsatisfactory. Sprint can also be weak inside buildings (see #2 about Verizon).
So that's what I have learned so far about buying cell phones. I figure the more people know, the more chances we have at driving down cell prices. If you didn't like the post just let it drop instead of flaming and keeping it on top.
Phones
The "secret" is that the cell companies pay the retailers a couple hundred dollars commission per activation. Decently new cell phones are actually worth $100-$200 bucks. This means that you should find a seller who is willing to eat up the cost of the phone with a good portion of their commission. Most retail cellphone stores aren't willing to do this, so you might not be able to find one. But I can guarantee that any store in Chinatown (NYC) will do this and this is how some people get phones for really cheap. I go to school in the city but I live in Jersey, and even in NJ i found a small store nearby that does this. For example, right now you should not be paying more than $50 for a Sony Ericsson T68m with activation (the store in NJ and Chinatown will offer the T68m for about $40); and I have a family member who got a LG VX-1 with Verizon activation for $85. I suspect that the phone prices vary because certain cell services pay more commission than others.
Service
Here are the overall rankings of reception quality, and varies a bit depending on area, but this is generally (and please note the bolded type) what I've found to be true. I've tested this on the west coast, midwest, and east coast:
1. Nextel / Verizon - Nextel was designed for businesses, and so is very expensive but has really good reception; in fact, it really doesn't belong on this list because it's not really an option for personal cell use. Verizon is hands-down best overall in terms of reception for personal cellular service; it is the one cell service that I have gotten ppl from all over the country to agree as the best. Also, generally, Verizon will work at least anywhere AT&T works. A technical note: I don't know if this is 100% true but I've heard that even though both Verizon and Sprint use the CDMA protocol, Verizon tends to work better especially inside buildings because Verizon uses the 800mhz (among others) frequency, which penetrates buildings better than the frequencies that Sprint employs.
2. AT&T - ATT kinda sucks but it's still better than many other services. The common problem with ATT is that the phone would show many bars of reception, yet when you're actually talking, it'll randomly screw up or drop your calls. Basically, it's shaky and depends on what area you live in. Yes I know I'm going to anger lots of ATT fans, but perhaps ATT will be better once they fully implement GSM (by which time GSM will be obsolete and 3G will take over). Also, my friends who have the Motorola V60c with Verizon get perfect service while the friends who have the V60t with AT&T always complain of calls getting dropped, which is probably why AT&T offers the V60t for free while Verizon still offers the V60c (they look identical) for more than $100..
3. VoiceStream / Cingular - Being a decently satisfied VStream customer, I regret to rank it so low on the list. Cingular is here because it's basically the exact same thing as VoiceStream. VoiceStream/Cingular doesn't have very good coverage. It's usually the weakest when you're inside buildings. What VStream is good at, however, is it's high-tech features. So far, Vstream is the carrier that provides the most advanced features for free (go on AIM, check weather, check flight status, etc); and VStream/Cingular are the first ones to use GSM instead of unbelievably outdated protocols (TDMA, CDMA) that most other services use. In addition, VoiceStream attempts to make up for the low coverage with lots of minute. Right now you can get a national plan (meaning you can call to anywhere in the country as well as from anywhere in the country) for $40/mo with 500 weekday and unlimited weekend minutes.
4. Sprint PCS - I don't personally know any satisfied Sprint customers, but I believe Sprint does work well in very specific parts of the country; however, the phones are expensive and the service is usually unsatisfactory. Sprint can also be weak inside buildings (see #2 about Verizon).
So that's what I have learned so far about buying cell phones. I figure the more people know, the more chances we have at driving down cell prices. If you didn't like the post just let it drop instead of flaming and keeping it on top.